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According to a BBC investigation done, Individuals with mis-sold PPI can widely differ in their amount of compensation. This can be attributed to the way credit card providers interpret some regulatory guidelines.

“The cost of redress varies according to the provider of the credit card”, Ms. Lowe said; an Open University’s personal finance lecturer.

“PPI compensation seem like a lottery these days”, Jonquil Lowe said, a personal finance expert.

The difference in PPI compensation was noted last year by Martin Baker; a managing director of a Swindon-based claims company. He challenged MBNA’s offered redress. This is Renaissance Easy Claim; a credit card provider based in U.S which extends market to U.K.

Mr. Baker noticed that the compensation offered by MBNA was lower than what was offered compensation by high street banks. His book has now more than 1,000 clients receiving MBNA compensation.

“If MBNA pay as much as the high street banks, they could have offered more than 80% due. They appeared to only give 50% lower than the offer made by high street banks”, Mr. Baker added.

Mr. Baker also pointed that there is another American credit card provider that offers the same rate as with MBNA and this is Capital One. He also explained the root cause of all these difference. According to him, once you remove PPI charges, debtors owing amount will definitely be lower. Hence, by the time the cardholder pays one’s due in full, it still appear to be overpaid if based on their reconstructed card history. The way the credit card provider treats overpayment causes difference in the amount of compensation offered. High street banks consider this to be temporary credit for the client’s future spending. But to Capital One and MBNA, this is treated as their permanent loan to the client which can last a lifetime with the card. To some, this may make sense technically. But as you dig deeper, you will realize that this will create significant effect to the PPI compensation. This is because clients are paying 8% interest on the loan but Capital One and MBNA offer less to their clients allowed credit.

“There is a systemic flaw in such methodology, said Martin Baker.

“Despite my technical expertise, it took me 80 hours to discover the discrepancies. I wonder how an average consumer will know about these issues when they don’t have the ability to reconstruct their accounts the way I did It.”, finance lecturer Jonquil Lowe said. “

On top of the discrepancies in PPI compensation computations, consumers need to know that there are PPI claim companies that charge 30% for their services. You need to know that there are those that only offer it at 15% and examples of these are PPIClaimsOnline247.co.uk and many others. Hence, to cut the cost on your expenses, you need to choose well.